Bitcoin consolidates at $86,000... Analysts identify $74,000 as a key support level

Source: BlockMedia
Original Title: [Coin Market] Bitcoin trading range around $86,000… “$74,000 is the final support level”
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On the 16th, Bitcoin dropped to the $86,000 range. As year-end liquidity decreases, coupled with the Bank of Japan(BOJ)'s rate statement and renewed attention to artificial intelligence(AI) bubble theories, the market shows signs of stagnation.

At 8:18 AM that morning, among domestic digital asset exchanges, Bitcoin(BTC) fell 2.10% compared to 9 AM the previous day, with a trading price of 129 million Korean won. At the same time, the trading price on a leading exchange dropped 2.46% to $86,327. Ethereum(ETH) fell 3.22% to $2,963, and Ripple(XRP) fell 4.48% to $1.89.

Data shows that in the past 24 hours, approximately $204 million(about 30 billion KRW) of positions were liquidated, with about 97.1% being long(long positions. Ethereum liquidation amounted to about $211 million)about 31 billion KRW(. The total liquidation volume in the digital asset market was approximately $647 million)about 95.2 billion KRW(.

Market analysis indicates that recent Bitcoin decline is related to multiple factors: the US stock market closed lower the day before, concerns over the AI bubble intensified, leading to a sell-off in tech stocks, which negatively impacted digital assets. When the stock market performs poorly, Bitcoin usually faces downward pressure.

Additionally, the Bank of Japan)BOJ('s rate decision is seen as a short-term volatility factor. The BOJ is expected to raise the benchmark interest rate by 0.25 percentage points to 0.75% at the policy meeting on the 19th)local time(. This decision could serve as a new catalyst for the market, breaking the current sideways trend and forming a directional movement.

Bitcoin’s weakness is also affected by the “year-end effect.” Year-end holidays lead to decreased market liquidity, institutional funds are limited from flowing in, and Bitcoin is trapped in a narrow sideways range.

Analyst Tony Severino)Tony Severino( stated, “Bitcoin is still in a medium-term uptrend; for a reversal to a weak market, lower lows need to form, and a downtrend must be confirmed.” He specifically pointed out that $74,000 is a key support level to maintain strength.

Severino further noted, “$100,000 is a strong psychological resistance level. If this level is broken, market sentiment will improve significantly, and investors may ignore the possibility of a correction.”

On the other hand, the fear and greed index, which reflects market sentiment towards digital assets, was at 16 points)extreme fear( that day, down from 21 the previous day. The closer the index is to 0, the stronger the selling pressure; the closer to 100, the higher the buying inclination.